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Economic growth requires that firms adopt new technologies. However, it may be insufficient or excessive in less competitive industries from the social welfare point of view. In this case, a government subsidy or tax is necessary. We analyze the optimum subsidy or tax policy for new technology...
This paper explores the effects of changes in bank credit on firm growth before and after the recent global financial crisis, taking into account firm-specific and country-specific characteristics as well as structural characteristics of domestic banking sectors. Panel quantile analysis is used...
Since the mid-2000s, the European Commission has employed a so-called ‘more economic approach’ to European state aid control. Under this modified regime, the Commission checks not only whether a state aid has competition-distorting effects, but in addition, whether it enhances social welfare....
Despite the proclaimed return of industrial policy state aid provided by EU Member States is at historically low levels. This fact is at least partly explained by the unique institutional arrangement in the EU which empowers the European Commission to monitor and restrict state aid activities of...
We consider strategic trade policy for information and communication technology (ICT) product markets with international rivalry. Usually, ICT products exhibit network externalities and product compatibility (i.e., network compatibility). We demonstrate that the optimal strategic trade policy...
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